Seven out of 10 smaller businesses are not aware of government training initiatives, according to a survey by the independent Small Business Research Trust (SBRT).

The report revealed that almost half of those smaller firms responding carried out no formal training, though this did not exclude informal, on-the-job training.

Awareness of government training schemes was particularly low among micro firms (0 to 9 employees), with just over 17% aware of the role of the Sector Skills Councils or the Train2Gain programme. Among small firms (10 to 49 employees), about a third of the respondents were aware of one or both of these initiatives. Medium-sized firms (50 to 249 employees) reported that almost 29% knew about the Sector Skills Councils and over 40% about Train2Gain.

The report also shows that the smaller the business, the less likely it is to offer any external or internal formal training.

Simon Wainwright, head of business banking at HSBC, says: “Time and money are rare commodities in most small businesses, so the prospect of having to spend potentially thousands of pounds on training often makes companies unwilling to consider it.”

Lack of information on skills initiatives was one factor cited as a reason for not undertaking formal, external training. Another major concern among all types of smaller businesses was the difficulty of replacing employees who were absent while training.